How To Waste Money

Put the government in charge! Stories of wasteful government spending often get people riled up. Stories explaining that wasteful government spending is almost universal should cause even more consternation. Maybe a new administration will fix it, huh?

Alas, no. Waste in government spending is unavoidable. It’s not because people in government are inept or sloppy. It’s wired into the scenario. Private sectors entities fail if they are wasteful. They go bankrupt, or are bought by outsiders and reformed. Competition keeps them on their toes. In a competitive trial and error  environments, efficiency wins. Survivors are forced to be efficient.

Government has no competition.  Good practices and efficiency can and do happen, but there’s nothing that forces it to happen, so it doesn’t happen as often.

Remember this the next time some politician wants to have the government regulate or control some private sector activity. I wonder how much better of we’d all be if the existing layers of regulation were ruthlessly peeled away.

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